Facts About SB 1171

California’s commercial real estate broker agency disclosure law

What You Need to Know

SB 1171, the California broker agency disclosure law pioneered by Hughes Marino President & CEO Jason Hughes, took effect on January 1, 2015. The law requires commercial real estate brokers to disclose to clients at the outset of their working relationship whether they represent the seller/landlord, the buyer/tenant, or both in any real estate transaction.

Commercial tenants should pay close attention to the disclosure form their brokers will ask them to sign, which explains the broker’s duties to the client as well as the risks of working with a broker who represents both tenants and landlords (known as a “dual agent”). Critically, a dual agent is not allowed to disclose confidential information between parties, which reduces them to the role of a simple messenger rather than a savvy negotiator.